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Today’s society is heavily reliant on the internet, social media, and smartphone technology. And it is no surprise that more entrepreneurs are looking to get involved with tech support and network engineering. If you are interested in launching your own online network engineering business, it is important to take the right steps to minimize risk and streamline the process.
Understanding the industry is just one step on the road to getting your business up and running. After that, you need to create a business plan and get the infrastructure in place to support growth. Before you begin providing services to prospective clients, you should look into where, how, and what type of payments you’ll be accepting from your customers. Cash, debit, credit, and ACH each require a different set up process. The right payment gateway for your technical support business will allow you to accept a multitude of payment types and may help to minimize the inherent risks.
The Business of Tech Support Network Engineering
Tech support network engineering can entail everything from managing client enterprise accounts, installing and updating software, or troubleshooting issues. Tech support network engineers are well-versed in the current software used with a variety of servers and online setups. But they need also to be comfortable with the hardware used to build the systems and keep them running. Providing tech support network engineering may require you to offer the following services to prospective clients and customers:
- Installing and updating current/future operating systems
- Installing/updating software
- Software configuration and security
- Security scans/backups for data on a daily, weekly, and monthly basis
- Diagnosing and troubleshooting issues for individual enterprise clients within a timely manner
- Creating and organizing comprehensive data reports and analytic reports for both clients and company
- Providing ongoing technical support and feedback to customers and loyal clients
- Adapting to new updates and software releases
- Providing consistent and accurate reports for all clients and data received
- Offering consistent follow-ups with each client to ensure satisfaction and smooth operation on all ends
Why Technical Support is Considered High Risk
While tech support is a booming and ever-growing industry, it is extremely high risk for banks and loan offices. Due to the very volatile nature of the tech support and network engineering industries, traditional institutions are extremely hesitant. These may include standard loan offices, banking institutions, and merchant account providers. Most of the time this means that they are not equipped for the amount of risk that your business-type has. A couple of the reasons why the tech support industry is considered high risk include:
- Fraud: With the rise of data hacking, phishing, and online scams, fraud is becoming an epidemic online. Scams, data theft, and breaches have caused merchant account providers to become leery of approving new applicants. Increased fraud causes tier one payment processors, such as Stripe and Paypal, to deny this industry’s merchant accounts. Rather than taking on and absorbing the risk themselves, Paypal and Stripe simply prefer to work with low-risk markets. Even if your business has no part in this fraudulency, the industry type is deemed ‘too risky’. By entering in this high risk industry, your business must assume this as a part of life. That is why many businesses in this space implement fraud prevention techniques to make them less risky to banks and payment processors.
- Chargebacks: Similarly with other high risk industries, tech support is notorious for its high chargeback rates. Chargebacks occur when a customer reached out to their bank to refund a purchase on their account. Sometimes this is because the customer couldn’t contact you, while other times it’s fraud. Large volume industries see this as a greater issue than most, because consumers have higher expectations and shorter fuses. Online businesses also see this as an increased issue due to fraud being conducted, but it can be mitigated.
Reasons to Apply with a Hard-to-Place Processor
Oftentimes, business owners get set up with a tier one provider and get their account closed weeks, months, or years after the fact for being high risk. Obtaining a high risk merchant account for technical support engineering is a way for you to conduct business without worrying about a shutdown. Additionally, when you have a high risk credit card processing account, you also have benefits to minimize your risk:
- Minimize/Eliminate Account Termination Risks. Working with a tech support or high risk merchant account provider is a way to gain peace of mind. Ensure that you are approved to process payments without a risk of being closed down. High risk payment processors are well aware of the risks they are taking on with your industry type. But, by providing risk management tools and software, they can de-risk your business and keep you processing. Reduction in fraud and chargebacks for your business in the technical support industry is their top priority.
- Avoid the Interruption of Revenue Generation. An auto-approval from a tier one provider means that there is no guarantee of an ongoing account. As soon as that processor realizes your business type, you will be closed off and your funds held for months. By applying for a high risk merchant account, you effectively alleviate the stress of imminent closure.
Secure a Networking Engineer Merchant Account
Securing a networking engineer payment processor account is possible by organizing and preparing personal and business information necessary for the processor of your choice. Once you have determined which tech support payment processor provider is right for you, you will likely be asked to share the following information:
- Personal Information: Your name, addresses, and banking information may be requested.
- Financials: SSNs, EIN, Tax ID information, and banking details that pertain to your tech support venture may be requested by the payment processor of your choice.
- Business Model: You may be required to share your current business model and business plan before receiving the approval you are seeking for your tech support merchant account.
- Revenue Generation Plan: For extremely high risk businesses, you may be required to prove your revenue-generation model or intentions based on your past experience and history in the tech support industry.
- Profits: If you have made a profit in the past or if you are generating new clients and sales already, showing this information may expedite the approval process.
You will be contacted by an account representative to complete any additional information after you have started the submission process online. High risk merchant account providers are working to ensure that individuals who want to provide services such as network engineering and technical support have the ability to do so without hundreds of rules, regulations, and restrictions in place.
Your High Risk Merchant Account
With the right merchant account payment processor, begin generating sales and building your clientele without fretting or stressing over the possibility of losing your merchant account or discovering it has been terminated altogether.
Obtaining a networking engineer merchant account may be a hassle at first, but is extremely beneficial in the long term. New businesses can ensure that they can grow and scale efficiently with a tech support merchant account. And as you build your customer base, being able to accommodate them is necessary. With the right networking engineer credit card processor, feel at ease as you continue to grow, scale, and profit with your new tech support business.